Weibo Reports First Quarter 2023 Unaudited Financial Results and Dividend.

BEIJING: Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB and HKEX: 9898), a leading social media in China, today announced its unaudited financial results for first quarter ended March 31, 2023.

"We witnessed gradual recovery of our business in the first quarter of 2023 amid reopening," said Gaofei Wang, CEO of Weibo. "Throughout this quarter, we are encouraged to see solid user engagement improvement, with our continued execution of operating efficiency initiatives. Looking ahead to our monetization, with normalization of offline activities and gradual recovery of consumer spending, we will ramp up our efforts to capture pent-up demands from advertisers. In addition, we will focus on sectors that have demonstrated resilience amid economic challenges as well as those with growth opportunities, to further unlock monetization potentials of our platform. Lastly, we are pleased to announce that our board of directors has approved a special cash dividend to our shareholders. Going forward, we will remain committed to our long-term growth opportunity, with a focus on financial discipline and returning value to our shareholders."

First Quarter 2023 Highlights

Net revenues were $413.8 million, a decrease of 15% year-over-year or a decrease of 7% year-over-year on a constant currency basis [1].

Advertising and marketing revenues were $355.3 million, a decrease of 17% year-over-year.

Value-added service ("VAS") revenues were $58.5 million, an increase of 2% year-over-year.

Income from operations was $96.5 million, representing an operating margin of 23%.

Net income attributable to Weibo's shareholders was $100.5 million and diluted net income per share was $0.42.

Non-GAAP income from operations was $128.6 million, representing a non-GAAP operating margin of 31%.

Non-GAAP net income attributable to Weibo's shareholders was $111.2 million and non-GAAP diluted net income per share was $0.47.

Monthly active users ("MAUs") were 593 million in March 2023, a net addition of approximately 11 million users on a year-over-year basis. Mobile MAUs represented 95% of MAUs.

Average daily active users ("DAUs") were 255 million in March 2023, a net addition of approximately 3 million users on a year-over-year basis.

[1] On a constant currency (non-GAAP) basis, we assume that the exchange rate in the first quarter of 2023 had been the same as it was in the first quarter of 2022, or RMB 6.34=US$1.00.

First Quarter 2023 Financial Results

For the first quarter...